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In an attempt to survive Zynga to lay off 520 employees

Staff writer |
Zynga Inc. announced cost cutting strategy, including a workforce reduction and closure of offices. That should result in $70 million to $80 million in savings.

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As part of these initiatives, Zynga expects to complete a reduction in force of approximately 520 employees or approximately 18% of its global workforce. The workforce reduction will occur across all functions and is expected to be substantially complete by August 2013.

Zynga will record pre-tax restructuring charges of approximately $24 million to $26 million in the second quarter, and $2 million to $5 million in the third quarter. Zynga also expects to record an estimated $15 million reversal of stock-based expense in the second quarter of 2013 as a result of the net impact of these workforce reductions.

The company updated outlook for the second quarter of 2013: net loss is projected to be in the range of $39 million to $28.5 million.

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